The Directorate General of Foreign Trade (DGFT) issued a notification of new HSN codes for the technical textiles items on 17th April 2023 with reference to the DGFT notification no. 20/2015-20 dated July 07, 2022.
It has been emphasised by the Ministry of Textiles that all importers and exporters must submit their Bill of Entry/Shipping Bill using the relevant HSN codes made available for technical textiles and man-made fibres under Input Tax Credit (HS) 2022, Schedule I (Import Policy).
When goods are imported into a country, an importer or their authorised agent must file a bill of entry with the customs department. It is a statement of the type, amount, value, and country of origin of the imported products.
As per the amendment of the Finance Act, 2002 dated March 30, 2022, the DGFT through the notification introduced newly created/deleted/merged/split ITC (HS) codes.
With regard to the PLI (Production Linked Incentive) Scheme announced by the Ministry of Textiles for Textiles covering Man Made Fibre (MMF) and Technical Textiles as focus areas of growth under the Scheme, the DGFT had, among other things, notified total 32 New HSN Codes for Technical Textiles under Chapters 39, 54, 55, 56, 59, 60, 62, 63, and 68 of ITC(HS) 2022, Schedule 1 (Import Policy) through this notification.
Based on the physical and chemical characteristics, technical textiles are materials that are created and produced for certain functional uses. In addition to comfort and aesthetics, these fabrics are made to serve certain purposes, such as enhancing performance, enhancing safety, and offering protection from harmful external elements including heat, cold, and radiation.
Despite the fact that Technical Textiles have their own HS Codes, it has been observed that imports and exports have not been recorded under these codes, instead appearing to be recorded under other valid codes.
According to the notification, members of Trade and Industry should immediately adopt appropriate HS Codes at the 8-digit level for such items if they ween that the current 32 HS Codes are too narrow to cover the Technical Textiles goods that they are importing or exporting.
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